Why in news
A special court has directed the Anti-Corruption Bureau (ACB) to register an FIR against former SEBI Chairperson Madhabi Puri Buch, three current SEBI members, and two BSE officials.
Charges include stock market fraud, regulatory violations, and corruption related to the 1994 listing of Cals Refineries.
SEBI and BSE Responses
SEBI plans to legally challenge the court’s order.
SEBI was not given time to respond and was not served with notice.
SEBI pointed out the officials named were not in their current positions during the Cals Refineries listing.
BSE called the complaint "frivolous" and stated the officials involved were not in their roles at the time of the listing.
Court’s Rationale for FIR
The court noted that the allegations revealed evidence of a cognizable offense, justifying an investigation.
The judge stated that there was prima facie evidence of regulatory lapses and collusion.
As a result, the court directed the ACB to register an FIR and investigate the matter, with a status report to be submitted within 30 days.
Allegations and Complaint Details
The complaint was filed by Sapan Shrivastava, a legal reporter from Maharashtra.
The complaint claims SEBI officials allowed Cals Refineries to list without meeting regulatory requirements in 1994
The listing allegedly facilitated market manipulation and corporate fraud.
Cals Refineries was suspended from trading on the BSE in 2019.
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